Tough global economic conditions have taken their toll on Guernsey bank deposits as the island's financial sector's promotional arm, Guernsey Finance, reports a fall of 6.1% (£6.5bn) in the value of bank deposits in the first quarter of the year.
The withdrawals have taken the total value of deposits down to £101bn, which represents a decrease of £11.8bn (10.5%) year on year. Deputy CEO, Fiona Le Poidevin, spoke of the banking sector’s disappointment at this further decline in the value of deposits. “Some of the fall was due to exchange rate factors but there was also a material drop in volumes as a result of the global trend of banks deleveraging in the face of uncertainties surrounding the Eurozone, capital adequacy pressures and weak economic growth.” Current exchange analysis confirmed that as sterling strengthened again...
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